SUBCHAPTER I—THE NATIONAL FLOOD INSURANCE PROGRAM
§4011. Authorization to establish and carry out program
(a) Authorization and establishment
To carry out the purposes of this chapter, the Administrator of the Federal Emergency Management Agency is authorized to establish and carry out a national flood insurance program which will enable interested persons to purchase insurance against loss resulting from physical damage to or loss of real property or personal property related thereto arising from any flood occurring in the United States.
(b) Additional coverage for compliance with land use and control measures
The national flood insurance program established pursuant to subsection (a) shall enable the purchase of insurance to cover the cost of implementing measures that are consistent with land use and control measures established by the community under
(1) properties that are repetitive loss structures;
(2) properties that are substantially damaged structures;
(3) properties that have sustained flood damage on multiple occasions, if the Administrator determines that it is cost-effective and in the best interests of the National Flood Insurance Fund to require the implementation of such measures; and
(4) properties for which an offer of mitigation assistance is made under—
(A)
(B) the Hazard Mitigation Grant Program authorized under
(C) the Predisaster Hazard Mitigation Program under
(D) any programs authorized or for which funds are appropriated to address any unmet needs or for which supplemental funds are made available.
The Administrator shall impose a surcharge on each insured of not more than $75 per policy to provide cost of compliance coverage in accordance with the provisions of this subsection.
(c) Participation and risk sharing by insurers
In carrying out the flood insurance program the Administrator shall, to the maximum extent practicable, encourage and arrange for—
(1) appropriate financial participation and risk sharing in the program by insurance companies and other insurers, and
(2) other appropriate participation, on other than a risk-sharing basis, by insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations,
in accordance with the provisions of subchapter II.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—Subsec. (a).
Subsec. (b).
Subsec. (b)(3).
Subsec. (b)(4)(B) to (E).
Subsec. (c).
2004—Subsec. (b).
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(4).
1994—Subsecs. (b), (c).
1983—Subsec. (a).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1994 Amendment
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
Flood in Progress Determinations
"(a)
"(1)
"(A) the processes and procedures for determining that a flood event has commenced or is in progress for purposes of flood insurance coverage made available under the National Flood Insurance Program;
"(B) the processes and procedures for providing public notification that such a flood event has commenced or is in progress;
"(C) the processes and procedures regarding the timing of public notification of flood insurance requirements and availability; and
"(D) the effects and implications that weather conditions, including rainfall, snowfall, projected snowmelt, existing water levels, and other conditions, have on the determination that a flood event has commenced or is in progress.
"(2)
"(A) the results and conclusions of the review under paragraph (1); and
"(B) any actions taken, or proposed actions to be taken, by the Administrator to provide for more precise and technical processes and procedures for determining that a flood event has commenced or is in progress.
"(b)
"(1)
"(2)
"(A) be deemed to take effect on the date that is 30 days after the date on which all obligations for the eligible coverage (including completion of the application and payment of any initial premiums owed) are satisfactorily completed; and
"(B) cover damage to property occurring after the effective date described in subparagraph (A) that resulted from the flooding of the Missouri River that commenced on June 1, 2011, if the property did not suffer damage or loss as a result of such flooding before the effective date described in subparagraph (A).
"(c)
[For definitions of terms used in section 100227 of
Congressional Findings
"(1) the national flood insurance program—
"(A) identifies the flood risk;
"(B) provides flood risk information to the public;
"(C) encourages State and local governments to make appropriate land use adjustments to constrict the development of land which is exposed to flood damage and minimize damage caused by flood losses; and
"(D) makes flood insurance available on a nationwide basis that would otherwise not be available, to accelerate recovery from floods, mitigate future losses, save lives, and reduce the personal and national costs of flood disasters;
"(2) the national flood insurance program insures approximately 4,400,000 policyholders;
"(3) approximately 48,000 properties currently insured under the program have experienced, within a 10-year period, 2 or more flood losses where each such loss exceeds the amount $1,000;
"(4) approximately 10,000 of these repetitive-loss properties have experienced either 2 or 3 losses that cumulatively exceed building value or 4 or more losses, each exceeding $1,000;
"(5) repetitive-loss properties constitute a significant drain on the resources of the national flood insurance program, costing about $200,000,000 annually;
"(6) repetitive-loss properties comprise approximately 1 percent of currently insured properties but are expected to account for 25 to 30 percent of claims losses;
"(7) the vast majority of repetitive-loss properties were built before local community implementation of floodplain management standards under the program and thus are eligible for subsidized flood insurance;
"(8) while some property owners take advantage of the program allowing subsidized flood insurance without requiring mitigation action, others are trapped in a vicious cycle of suffering flooding, then repairing flood damage, then suffering flooding, without the means to mitigate losses or move out of harm's way;
"(9) mitigation of repetitive-loss properties through buyouts, elevations, relocations, or flood-proofing will produce savings for policyholders under the program and for Federal taxpayers through reduced flood insurance losses and reduced Federal disaster assistance;
"(10) a strategy of making mitigation offers aimed at high-priority repetitive-loss properties and shifting more of the burden of recovery costs to property owners who choose to remain vulnerable to repetitive flood damage can encourage property owners to take appropriate actions that reduce loss of life and property damage and benefit the financial soundness of the program;
"(11) the method for addressing repetitive-loss properties should be flexible enough to take into consideration legitimate circumstances that may prevent an owner from taking a mitigation action; and
"(12) focusing the mitigation and buy-out of repetitive loss properties upon communities and property owners that choose to voluntarily participate in a mitigation and buy-out program will maximize the benefits of such a program, while minimizing any adverse impact on communities and property owners."
Miscellaneous Flood Insurance Provisions
"SEC. 201. DEFINITIONS.
"In this title, the following definitions shall apply:
"(1)
"(2)
"(3)
"SEC. 202. SUPPLEMENTAL FORMS.
"(a)
"(1) the exact coverages being purchased by a policyholder;
"(2) any exclusions from coverage that apply to the coverages purchased;
"(3) an explanation, including illustrations, of how lost items and damages will be valued under the policy at the time of loss;
"(4) the number and dollar value of claims filed under a flood insurance policy over the life of the property, and the effect, under the National Flood Insurance Act of 1968 (
"(5) any other information that the Director determines will be helpful to policyholders in understanding flood insurance coverage.
"(b)
"(1) all holders of a flood insurance policy at the time of purchase and renewal; and
"(2) insurance companies and agents that are authorized to sell flood insurance policies.
"SEC. 203. ACKNOWLEDGEMENT FORM.
"(a)
"(1) an acknowledgement that the purchaser has received a copy of the standard flood insurance policy, and any forms developed under section 202; and
"(2) an acknowledgement that the purchaser has been told that the contents of a property or dwelling are not covered under the terms of the standard flood insurance policy, and that the policyholder has the option to purchase additional coverage for such contents.
"(b)
"SEC. 204. FLOOD INSURANCE CLAIMS HANDBOOK.
"(a)
"(1) a description of the procedures to be followed to file a claim under the Program, including how to pursue a claim to completion;
"(2) how to file supplementary claims, proof of loss, and any other information relating to the filing of claims under the Program; and
"(3) detailed information regarding the appeals process established under section 205.
"(b)
"(1) each insurance company and agent authorized to sell flood insurance policies; and
"(2) each purchaser, at the time of purchase and renewal, of a flood insurance policy, and at the time of any flood loss sustained by such purchaser.
"SEC. 205. APPEAL OF DECISIONS RELATING TO FLOOD INSURANCE COVERAGE.
"Not later than 6 months after the date of enactment of this Act [June 30, 2004], the Director shall, by regulation, establish an appeals process through which holders of a flood insurance policy may appeal the decisions, with respect to claims, proofs of loss, and loss estimates relating to such flood insurance policy, of—
"(1) any insurance agent or adjuster, or insurance company; or
"(2) any employee or contractor of the Federal Emergency Management Agency.
"SEC. 206. STUDY AND REPORT ON USE OF COST COMPLIANCE COVERAGE.
"Not later than 1 year after the date of enactment of this Act [June 30, 2004], the Administrator of the Federal Emergency Management Agency shall submit to Congress a report that sets forth—
"(1) the use of cost of compliance coverage under section 1304(b) of the National Flood Insurance Act of 1968 (
"(2) any barriers to policyholders using the funds provided by cost of compliance coverage under that section 1304(b) under a flood insurance policy, and recommendations to address those barriers; and
"(3) the steps that the Federal Emergency Management Agency has taken to ensure that funds paid for cost of compliance coverage under that section 1304(b) are being used to lessen the burdens on all homeowners and the Program.
"SEC. 207. MINIMUM TRAINING AND EDUCATION REQUIREMENTS.
"The Administrator of the Federal Emergency Management Agency shall, in cooperation with the insurance industry, State insurance regulators, and other interested parties—
"(1) establish minimum training and education requirements for all insurance agents who sell flood insurance policies; and
"(2) not later than 6 months after the date of enactment of this Act [June 30, 2004], publish these requirements in the Federal Register, and inform insurance companies and agents of the requirements.
"SEC. 208. GAO STUDY AND REPORT.
"(a)
"(1) the adequacy of the scope of coverage provided under flood insurance policies in meeting the intended goal of Congress that flood victims be restored to their pre-flood conditions, and any recommendations to ensure that goal is being met;
"(2) the adequacy of payments to flood victims under flood insurance policies; and
"(3) the practices of the Federal Emergency Management Agency and insurance adjusters in estimating losses incurred during a flood, and how such practices affect the adequacy of payments to flood victims.
"(b)
"SEC. 209. PROSPECTIVE PAYMENT OF FLOOD INSURANCE PREMIUMS.
[Amended
"SEC. 210. REPORT ON CHANGES TO FEE SCHEDULE OR FEE PAYMENT ARRANGEMENTS.
"Not later than 3 months after the date of enactment of this Act [June 30, 2004], the Director shall submit a report on any changes or modifications made to the fee schedule or fee payment arrangements between the Federal Emergency Management Agency and insurance adjusters who provide services with respect to flood insurance policies to—
"(1) the Committee on Banking, Housing, and Urban Affairs of the Senate; and
"(2) the Committee on Financial Services of the House of Representatives."
Flood Insurance Interagency Task Force
Section 561 of
"(a)
"(b)
"(1)
"(A) the Federal Insurance Administrator;
"(B) the Federal Housing Commissioner;
"(C) the Secretary of Veterans Affairs;
"(D) the Administrator of the Farmers Home Administration;
"(E) the Administrator of the Small Business Administration;
"(F) the Chairman of the Board of Directors of the Farm Credit Administration;
"(G) a designee of the Financial Institutions Examination Council;
"(H) the Director of the Office of Federal Housing Enterprise Oversight;
"(I) the chairman of the Board of Directors of the Federal Home Loan Mortgage Corporation; and
"(J) the chairman of the Board of Directors of the Federal National Mortgage Association.
"(2)
"(c)
"(1)
"(2)
"(3)
"(4)
"(5)
"(A) the reasonableness of fees charged pursuant to 102(h) of the Flood Disaster Protection Act of 1973 [
"(B) whether the fees charged pursuant to such section by lenders and servicers are greater than the amounts paid by such lenders and servicers to persons actually conducting such determinations and the extent to which the fees exceed such amounts.
"(d)
"(e)
"(f)
"(g)
"(h)
"(i)
"(j)
§4012. Scope of program and priorities
(a) Priority for insurance for certain residential and church properties and business concerns
In carrying out the flood insurance program the Administrator shall afford a priority to making flood insurance available to cover residential properties which are designed for the occupancy of from one to four families, church properties, and business properties which are owned or leased and operated by small business concerns.
(b) Availability of insurance for other properties
If on the basis of—
(1) studies and investigations undertaken and carried out and information received or exchanged under
(2) such other information as may be necessary,
the Administrator determines that it would be feasible to extend the flood insurance program to cover other properties, he may take such action under this chapter as from time to time may be necessary in order to make flood insurance available to cover, on such basis as may be feasible, any types and classes of—
(A) other residential properties not described in subsection (a) or (d),
(B) other business properties,
(C) agricultural properties,
(D) properties occupied by private nonprofit organizations, and
(E) properties owned by State and local governments and agencies thereof,
and any such extensions of the program to any types and classes of these properties shall from time to time be prescribed in regulations.
(c) Availability of insurance in States or areas evidencing positive interest in securing insurance and assuring adoption of adequate land use and control measures
The Administrator shall make flood insurance available in only those States or areas (or subdivisions thereof) which he has determined have—
(1) evidenced a positive interest in securing flood insurance coverage under the flood insurance program, and
(2) given satisfactory assurance that by December 31, 1971, adequate land use and control measures will have been adopted for the State or area (or subdivision) which are consistent with the comprehensive criteria for land management and use developed under
(d) Availability of insurance for multifamily properties
(1) In general
The Administrator shall make flood insurance available to cover residential properties of 5 or more residences. Notwithstanding any other provision of law, the maximum coverage amount that the Administrator may make available under this subsection to such residential properties shall be equal to the coverage amount made available to commercial properties.
(2) Rule of construction
Nothing in this subsection shall be construed to limit the ability of individuals residing in residential properties of 5 or more residences to obtain insurance for the contents and personal articles located in such residences.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (b), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—Subsec. (a).
Subsec. (b).
Subsec. (b)(A).
Subsec. (c).
Subsec. (d).
1983—
1971—Subsec. (a).
1969—Subsec. (c)(2).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
§4012a. Flood insurance purchase and compliance requirements and escrow accounts
(a) Amount and term of coverage
After the expiration of sixty days following December 31, 1973, no Federal officer or agency shall approve any financial assistance for acquisition or construction purposes for use in any area that has been identified by the Administrator as an area having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968 [
(b) Requirement for mortgage loans
(1) Regulated lending institutions
Each Federal entity for lending regulation (after consultation and coordination with the Financial Institutions Examination Council established under the Federal Financial Institutions Examination Council Act of 1974 [
(A) not to make, increase, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Administrator as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968 [
(B) to accept private flood insurance as satisfaction of the flood insurance coverage requirement under subparagraph (A) if the coverage provided by such private flood insurance meets the requirements for coverage under such subparagraph.
(2) Federal agency lenders
A Federal agency lender may not make, increase, extend, or renew any loan secured by improved real estate or a mobile home located or to be located in an area that has been identified by the Administrator as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968, unless the building or mobile home and any personal property securing such loan is covered for the term of the loan by flood insurance in the amount provided in paragraph (1)(A). Each Federal agency lender shall accept private flood insurance as satisfaction of the flood insurance coverage requirement under the preceding sentence if the flood insurance coverage provided by such private flood insurance meets the requirements for coverage under such sentence. Each Federal agency lender shall issue any regulations necessary to carry out this paragraph. Such regulations shall be consistent with and substantially identical to the regulations issued under paragraph (1)(A).
(3) Government-sponsored enterprises for housing
The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall implement procedures reasonably designed to ensure that, for any loan that is—
(A) secured by improved real estate or a mobile home located in an area that has been identified, at the time of the origination of the loan or at any time during the term of the loan, by the Administrator as an area having special flood hazards and in which flood insurance is available under the National Flood Insurance Act of 1968, and
(B) purchased by such entity,
the building or mobile home and any personal property securing the loan is covered for the term of the loan by flood insurance in the amount provided in paragraph (1)(A). The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation shall accept private flood insurance as satisfaction of the flood insurance coverage requirement under paragraph (1)(A) if the flood insurance coverage provided by such private flood insurance meets the requirements for coverage under such paragraph and any requirements established by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, respectively, relating to the financial solvency, strength, or claims-paying ability of private insurance companies from which the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation will accept private flood insurance.
(4) Applicability
(A) Existing coverage
Except as provided in subparagraph (B), paragraph (1) shall apply on September 23, 1994.
(B) New coverage
Paragraphs (2) and (3) shall apply only with respect to any loan made, increased, extended, or renewed after the expiration of the 1-year period beginning on September 23, 1994. Paragraph (1) shall apply with respect to any loan made, increased, extended, or renewed by any lender supervised by the Farm Credit Administration only after the expiration of the period under this subparagraph.
(C) Continued effect of regulations
Notwithstanding any other provision of this subsection, the regulations to carry out paragraph (1), as in effect immediately before September 23, 1994, shall continue to apply until the regulations issued to carry out paragraph (1) as amended by section 522(a) of
(5) Rule of construction
Nothing in this subsection shall be construed to supersede or limit the authority of a Federal entity for lending regulation, the Federal Housing Finance Agency, a Federal agency lender, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation to establish requirements relating to the financial solvency, strength, or claims-paying ability of private insurance companies from which the entity or agency will accept private flood insurance.
(6) Notice
(A) In general
Each lender shall disclose to a borrower that is subject to this subsection that—
(i) flood insurance is available from private insurance companies that issue standard flood insurance policies on behalf of the national flood insurance program or directly from the national flood insurance program;
(ii) flood insurance that provides the same level of coverage as a standard flood insurance policy under the national flood insurance program may be available from a private insurance company that issues policies on behalf of the company; and
(iii) the borrower is encouraged to compare the flood insurance coverage, deductibles, exclusions, conditions and premiums associated with flood insurance policies issued on behalf of the national flood insurance program and policies issued on behalf of private insurance companies and to direct inquiries regarding the availability, cost, and comparisons of flood insurance coverage to an insurance agent.
(B) Rule of construction
Nothing in this paragraph shall be construed as affecting or otherwise limiting the authority of a Federal entity for lending regulation to approve any disclosure made by a regulated lending institution for purposes of complying with subparagraph (A).
(7) Private flood insurance defined
In this subsection, the term "private flood insurance" means an insurance policy that—
(A) is issued by an insurance company that is—
(i) licensed, admitted, or otherwise approved to engage in the business of insurance in the State or jurisdiction in which the insured building is located, by the insurance regulator of that State or jurisdiction; or
(ii) in the case of a policy of difference in conditions, multiple peril, all risk, or other blanket coverage insuring nonresidential commercial property, is 1 recognized, or not disapproved, as a surplus lines insurer by the insurance regulator of the State or jurisdiction where the property to be insured is located;
(B) provides flood insurance coverage which is at least as broad as the coverage provided under a standard flood insurance policy under the national flood insurance program, including when considering deductibles, exclusions, and conditions offered by the insurer;
(C) includes—
(i) a requirement for the insurer to give 45 days' written notice of cancellation or non-renewal of flood insurance coverage to—
(I) the insured; and
(II) the regulated lending institution or Federal agency lender;
(ii) information about the availability of flood insurance coverage under the national flood insurance program;
(iii) a mortgage interest clause similar to the clause contained in a standard flood insurance policy under the national flood insurance program; and
(iv) a provision requiring an insured to file suit not later than 1 year after date of a written denial of all or part of a claim under the policy; and
(D) contains cancellation provisions that are as restrictive as the provisions contained in a standard flood insurance policy under the national flood insurance program.
(c) Exceptions to purchase requirements
(1) State-owned property
Notwithstanding the other provisions of this section, flood insurance shall not be required on any State-owned property that is covered under an adequate State policy of self-insurance satisfactory to the Administrator. The Administrator shall publish and periodically revise the list of States to which this subsection applies.
(2) Small loans
Notwithstanding any other provision of this section, subsections (a) and (b) shall not apply to any loan having—
(A) an original outstanding principal balance of $5,000 or less; and
(B) a repayment term of 1 year or less.
(3) Detached structures
Notwithstanding any other provision of this section, flood insurance shall not be required, in the case of any residential property, for any structure that is a part of such property but is detached from the primary residential structure of such property and does not serve as a residence.
(d) Escrow of flood insurance payments
(1) Regulated lending institutions
(A) Federal entities responsible for lending regulations
Each Federal entity for lending regulation (after consultation and coordination with the Federal Financial Institutions Examination Council) shall, by regulation, direct that all premiums and fees for flood insurance under the National Flood Insurance Act of 1968, for residential improved real estate or a mobile home, shall be paid to the regulated lending institution or servicer for any loan secured by the residential improved real estate or mobile home, with the same frequency as payments on the loan are made, for the duration of the loan. Except as provided in subparagraph (B), upon receipt of any premiums or fees, the regulated lending institution or servicer shall deposit such premiums and fees in an escrow account on behalf of the borrower. Upon receipt of a notice from the Administrator or the provider of the flood insurance that insurance premiums are due, the premiums deposited in the escrow account shall be paid to the provider of the flood insurance.
(B) Limitation
Except as may be required under applicable State law, a Federal entity for lending regulation may not direct or require a regulated lending institution to deposit premiums or fees for flood insurance under the National Flood Insurance Act of 1968 in an escrow account on behalf of a borrower under subparagraph (A)—
(i) if—
(I) the regulated lending institution has total assets of less than $1,000,000,000; and
(II) on or before July 6, 2012, the regulated lending institution—
(aa) in the case of a loan secured by residential improved real estate or a mobile home, was not required under Federal or State law to deposit taxes, insurance premiums, fees, or any other charges in an escrow account for the entire term of the loan; and
(bb) did not have a policy of consistently and uniformly requiring the deposit of taxes, insurance premiums, fees, or any other charges in an escrow account for loans secured by residential improved real estate or a mobile home; or
(ii) in the case of a loan that—
(I) is in a junior or subordinate position to a senior lien secured by the same residential improved real estate or mobile home for which flood insurance is being provided at the time of the origination of the loan;
(II) is secured by residential improved real estate or a mobile home that is part of a condominium, cooperative, or other project development, if the residential improved real estate or mobile home is covered by a flood insurance policy that—
(aa) meets the requirements that the regulated lending institution is required to enforce under subsection (b)(1);
(bb) is provided by the condominium association, cooperative, homeowners association, or other applicable group; and
(cc) the premium for which is paid by the condominium association, cooperative, homeowners association, or other applicable group as a common expense;
(III) is secured by residential improved real estate or a mobile home that is used as collateral for a business purpose;
(IV) is a home equity line of credit;
(V) is a nonperforming loan; or
(VI) has a term of not longer than 12 months.
(2) Federal agency lenders
Each Federal agency lender shall by regulation require and provide for escrow and payment of any flood insurance premiums and fees relating to residential improved real estate and mobile homes securing loans made by the Federal agency lender under the circumstances and in the manner provided under paragraph (1). Any regulations issued under this paragraph shall be consistent with and substantially identical to the regulations issued under paragraph (1).
(3) Applicability of RESPA
Escrow accounts established pursuant to this subsection shall be subject to the provisions of section 10 of the Real Estate Settlement Procedures Act of 1974 [
(4) "Residential improved real estate" defined
For purposes of this subsection, the term "residential improved real estate" means improved real estate for which the improvement is a residential building.
(5) Applicability
This subsection shall apply only with respect to any loan made, increased, extended, or renewed after the expiration of the 1-year period beginning on September 23, 1994.
(e) Placement of flood insurance by lender
(1) Notification to borrower of lack of coverage
If, at the time of origination or at any time during the term of a loan secured by improved real estate or by a mobile home located in an area that has been identified by the Administrator (at the time of the origination of the loan or at any time during the term of the loan) as an area having special flood hazards and in which flood insurance is available under the National Flood Insurance Act of 1968 [
(2) Purchase of coverage on behalf of borrower
If the borrower fails to purchase such flood insurance within 45 days after notification under paragraph (1), the lender or servicer for the loan shall purchase the insurance on behalf of the borrower and may charge the borrower for the cost of premiums and fees incurred by the lender or servicer for the loan in purchasing the insurance, including premiums or fees incurred for coverage beginning on the date on which flood insurance coverage lapsed or did not provide a sufficient coverage amount.
(3) Termination of force-placed insurance
Within 30 days of receipt by the lender or servicer of a confirmation of a borrower's existing flood insurance coverage, the lender or servicer shall—
(A) terminate any insurance purchased by the lender or servicer under paragraph (2); and
(B) refund to the borrower all premiums paid by the borrower for any insurance purchased by the lender or servicer under paragraph (2) during any period during which the borrower's flood insurance coverage and the insurance coverage purchased by the lender or servicer were each in effect, and any related fees charged to the borrower with respect to the insurance purchased by the lender or servicer during such period.
(4) Sufficiency of demonstration
For purposes of confirming a borrower's existing flood insurance coverage, a lender or servicer for a loan shall accept from the borrower an insurance policy declarations page that includes the existing flood insurance policy number and the identity of, and contact information for, the insurance company or agent.
(5) Review of determination regarding required purchase
(A) In general
The borrower and lender for a loan secured by improved real estate or a mobile home may jointly request the Administrator to review a determination of whether the building or mobile home is located in an area having special flood hazards. Such request shall be supported by technical information relating to the improved real estate or mobile home. Not later than 45 days after the Administrator receives the request, the Administrator shall review the determination and provide to the borrower and the lender with a letter stating whether or not the building or mobile home is in an area having special flood hazards. The determination of the Administrator shall be final.
(B) Effect of determination
Any person to whom a borrower provides a letter issued by the Administrator pursuant to subparagraph (A), stating that the building or mobile home securing the loan of the borrower is not in an area having special flood hazards, shall have no obligation under this title 2 to require the purchase of flood insurance for such building or mobile home during the period determined by the Administrator, which shall be specified in the letter and shall begin on the date on which such letter is provided.
(C) Effect of failure to respond
If a request under subparagraph (A) is made in connection with the origination of a loan and the Administrator fails to provide a letter under subparagraph (A) before the later of (i) the expiration of the 45-day period under such subparagraph, or (ii) the closing of the loan, no person shall have an obligation under this title 2 to require the purchase of flood insurance for the building or mobile home securing the loan until such letter is provided.
(6) Applicability
This subsection shall apply to all loans outstanding on or after September 23, 1994.
(f) Civil monetary penalties for failure to require flood insurance or notify
(1) Civil monetary penalties against regulated lenders
Any regulated lending institution that is found to have a pattern or practice of committing violations under paragraph (2) shall be assessed a civil penalty by the appropriate Federal entity for lending regulation in the amount provided under paragraph (5).
(2) Lender violations
The violations referred to in paragraph (1) shall include—
(A) making, increasing, extending, or renewing loans in violation of—
(i) the regulations issued pursuant to subsection (b) of this section;
(ii) the escrow requirements under subsection (d) of this section; or
(iii) the notice requirements under section 1364 of the National Flood Insurance Act of 1968 [
(B) failure to provide notice or purchase flood insurance coverage in violation of subsection (e) of this section.
(3) Civil monetary penalties against GSE's
(A) In general
If the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation is found by the Director of the Federal Housing Finance Agency to have a pattern or practice of purchasing loans in violation of the procedures established pursuant to subsection (b)(3), the Director of such Office 3 shall assess a civil penalty against such enterprise in the amount provided under paragraph (5) of this subsection.
(B) "Enterprise" defined
For purposes of this subsection, the term "enterprise" means the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.
(4) Notice and hearing
A penalty under this subsection may be issued only after notice and an opportunity for a hearing on the record.
(5) Amount
A civil monetary penalty under this subsection may not exceed $2,000 for each violation under paragraph (2) or paragraph (3).
(6) Lender compliance
Notwithstanding any State or local law, for purposes of this subsection, any regulated lending institution that purchases flood insurance or renews a contract for flood insurance on behalf of or as an agent of a borrower of a loan for which flood insurance is required shall be considered to have complied with the regulations issued under subsection (b).
(7) Effect of transfer on liability
Any sale or other transfer of a loan by a regulated lending institution that has committed a violation under paragraph (1), that occurs subsequent to the violation, shall not affect the liability of the transferring lender with respect to any penalty under this subsection. A lender shall not be liable for any violations relating to a loan committed by another regulated lending institution that previously held the loan.
(8) Deposit of penalties
Any penalties collected under this subsection shall be paid into the National Flood Mitigation Fund under section 1367 of the National Flood Insurance Act of 1968 [
(9) Additional penalties
Any penalty under this subsection shall be in addition to any civil remedy or criminal penalty otherwise available.
(10) Statute of limitations
No penalty may be imposed under this subsection after the expiration of the 4-year period beginning on the date of the occurrence of the violation for which the penalty is authorized under this subsection.
(g) Other actions to remedy pattern of noncompliance
(1) Authority of Federal entities for lending regulation
A Federal entity for lending regulation may require a regulated lending institution to take such remedial actions as are necessary to ensure that the regulated lending institution complies with the requirements of the national flood insurance program if the Federal agency for lending regulation makes a determination under paragraph (2) regarding the regulated lending institution.
(2) Determination of violations
A determination under this paragraph shall be a finding that—
(A) the regulated lending institution has engaged in a pattern and practice of noncompliance in violation of the regulations issued pursuant to subsection (b), (d), or (e) or the notice requirements under section 1364 of the National Flood Insurance Act of 1968 [
(B) the regulated lending institution has not demonstrated measurable improvement in compliance despite the assessment of civil monetary penalties under subsection (f).
(h) Fee for determining location
Notwithstanding any other Federal or State law, any person who makes a loan secured by improved real estate or a mobile home or any servicer for such a loan may charge a reasonable fee for the costs of determining whether the building or mobile home securing the loan is located in an area having special flood hazards, but only in accordance with the following requirements:
(1) Borrower fee
The borrower under such a loan may be charged the fee, but only if the determination—
(A) is made pursuant to the making, increasing, extending, or renewing of the loan that is initiated by the borrower;
(B) is made pursuant to a revision or updating under section 1360(f) 4 [
(C) results in the purchase of flood insurance coverage pursuant to the requirement under subsection (e)(2).
(2) Purchaser or transferee fee
The purchaser or transferee of such a loan may be charged the fee in the case of sale or transfer of the loan.
(
Editorial Notes
References in Text
The National Flood Insurance Act of 1968, referred to in subsecs. (a), (b), (d)(1), and (e)(1), and the Act, referred to in subsec. (b), is title XIII of
The Federal Financial Institutions Examination Council Act of 1974, referred to in subsec. (b)(1), probably means the Federal Financial Institutions Examination Council Act of 1978,
Section 522(a) of
This title, referred to in subsec. (e)(5)(B), (C), means title I of
Codification
Section was enacted as part of the Flood Disaster Protection Act of 1973, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Amendments
2014—Subsec. (c)(3).
Subsec. (d)(1)(A).
Subsec. (d)(1)(B).
2013—Subsec. (d)(1)(A).
2012—Subsec. (a).
Subsec. (b)(1).
Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(3)(A).
Subsec. (b)(5) to (7).
Subsec. (c)(1).
Subsec. (d)(1).
Subsec. (e)(1).
Subsec. (e)(2).
Subsec. (e)(3).
Subsec. (e)(3).
Subsec. (e)(4) to (6).
Subsec. (f)(5).
Subsec. (h)(1)(B).
2008—Subsec. (f)(3)(A).
1994—
Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsecs. (d) to (h).
1983—
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
"(1)
"(A)
"(B)
"(i)
"(I) the terms 'Federal entity for lending regulation', 'improved real estate', 'regulated lending institution', and 'servicer' have the meanings given the terms in section 3 of the Flood Disaster Protection Act of 1973 (
"(II) the term 'outstanding loan' means a loan that—
"(aa) is outstanding as of January 1, 2016;
"(bb) is not subject to the requirement to escrow premiums and fees for flood insurance under section 102(d)(1) of the Flood Disaster Protection Act of 1973 (
"(cc) would, if the loan had been originated, refinanced, increased, extended, or renewed on or after January 1, 2016, be subject to the requirements under section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as amended; and
"(III) the term 'section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973, as amended' means section 102(d)(1)(A) of the Flood Disaster Protection Act of 1973 (
"(aa) section 100209(a) of the Biggert-Waters Flood Insurance Reform Act of 2012 (
"(bb) subsection (a) of this section.
"(ii)
Effective Date of 2012 Amendment
Effective Date of 1994 Amendment
Amendment by section 582(c) of
Rule of Construction
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
Treatment of Floodproofed Residential Basements
1 So in original. The word "is" probably should not appear.
2 See References in Text note below.
3 So in original. Probably should be "Agency".
4 So in original. Probably should be followed by "of the National Flood Insurance Act of 1968".
§4013. Nature and limitation of insurance coverage
(a) Regulations respecting general terms and conditions of insurability
The Administrator shall from time to time, after consultation with the advisory committee authorized under
(1) the types, classes, and locations of any such properties which shall be eligible for flood insurance;
(2) the nature and limits of loss or damage in any areas (or subdivisions thereof) which may be covered by such insurance;
(3) the classification, limitation, and rejection of any risks which may be advisable;
(4) appropriate minimum premiums;
(5) appropriate loss-deductibles; and
(6) any other terms and conditions relating to insurance coverage or exclusion which may be necessary to carry out the purposes of this chapter.
(b) Regulations respecting amount of coverage
In addition to any other terms and conditions under subsection (a), such regulations shall provide that—
(1) any flood insurance coverage based on chargeable premium rates under
(A) in the case of residential properties—
(i) $35,000 aggregate liability for any single-family dwelling, and $100,000 for any residential structure containing more than one dwelling unit,
(ii) $10,000 aggregate liability per dwelling unit for any contents related to such unit, and
(iii) in the States of Alaska and Hawaii, and in the Virgin Islands and Guam; the limits provided in clause (i) of this sentence shall be: $50,000 aggregate liability for any single-family dwelling, and $150,000 for any residential structure containing more than one dwelling unit;
(B) in the case of business properties which are owned or leased and operated by small business concerns, an aggregate liability with respect to any single structure, including any contents thereof related to premises of small business occupants (as that term is defined by the Administrator), which shall be equal to (i) $100,000 plus (ii) $100,000 multiplied by the number of such occupants and shall be allocated among such occupants (or among the occupant or occupants and the owner) under regulations prescribed by the Administrator; except that the aggregate liability for the structure itself may in no case exceed $100,000; and
(C) in the case of church properties and any other properties which may become eligible for flood insurance under
(i) $100,000 aggregate liability for any single structure, and
(ii) $100,000 aggregate liability per unit for any contents related to such unit; and
(2) in the case of any residential building designed for the occupancy of from 1 to 4 families for which the risk premium rate is determined in accordance with the provisions of
(3) in the case of any residential property for which the risk premium rate is determined in accordance with the provisions of
(4) in the case of any nonresidential building, including a church, for which the risk premium rate is determined in accordance with the provisions of
(5) any flood insurance coverage which may be made available in excess of the limits specified in subparagraph (A), (B), or (C) of paragraph (1), shall be based only on chargeable premium rates under
(c) Effective date of policies
(1) Waiting period
Except as provided in paragraph (2), coverage under a new contract for flood insurance coverage under this chapter entered into after September 23, 1994, and any modification to coverage under an existing flood insurance contract made after September 23, 1994, shall become effective upon the expiration of the 30-day period beginning on the date that all obligations for such coverage (including completion of the application and payment of any initial premiums owed) are satisfactorily completed.
(2) Exception
The provisions of paragraph (1) shall not apply to—
(A) the initial purchase of flood insurance coverage under this chapter when the purchase of insurance is in connection with the making, increasing, extension, or renewal of a loan;
(B) the initial purchase of flood insurance coverage pursuant to a revision or updating of floodplain areas or flood-risk zones under
(C) the initial purchase of flood insurance coverage for private property if—
(i) the Administrator determines that the property is affected by flooding on Federal land that is a result of, or is exacerbated by, post-wildfire conditions, after consultation with an authorized employee of the Federal agency that has jurisdiction of the land on which the wildfire that caused the post-wildfire conditions occurred; and
(ii) the flood insurance coverage was purchased not later than 60 days after the fire containment date, as determined by the appropriate Federal employee, relating to the wildfire that caused the post-wildfire conditions described in clause (i).
(d) Optional high-deductible policies for residential properties
(1) Availability
In the case of residential properties, the Administrator shall make flood insurance coverage available, at the option of the insured, that provides for a loss-deductible for damage to the covered property in various amounts, up to and including $10,000.
(2) Disclosure
(A) Form
The Administrator shall provide the information described in subparagraph (B) clearly and conspicuously on the application form for flood insurance coverage or on a separate form, segregated from all unrelated information and other required disclosures.
(B) Information
The information described in this subparagraph is—
(i) information sufficient to inform the applicant of the availability of the coverage option required by paragraph (1) to applicants for flood insurance coverage; and
(ii) a statement explaining the effect of a loss-deductible and that, in the event of an insured loss, the insured is responsible out-of-pocket for losses to the extent of the deductible selected.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a)(6) and (c)(1), (2)(A), was in the original a reference to "this title" meaning title XIII of
Amendments
2014—Subsec. (d).
2012—Subsec. (a).
Subsec. (b)(1)(B).
Subsec. (b)(2).
Subsec. (b)(4).
Subsec. (c)(2)(C).
1994—Subsec. (b)(2).
Subsec. (b)(3).
Subsec. (b)(4).
Subsec. (b)(5).
Subsec. (b)(6).
Subsec. (c).
1990—Subsec. (c)(7).
1989—Subsec. (c)(7).
1988—Subsec. (c).
Subsec. (c)(1)(A).
Subsec. (c)(5).
1983—Subsecs. (a), (b)(1)(B), (4).
1977—Subsec. (b)(2).
Subsec. (b)(3), (4).
Subsec. (b)(5).
Subsec. (b)(6).
1973—Subsec. (b)(1)(A).
Subsec. (b)(1)(B).
Subsec. (b)(1)(C).
1971—Subsec. (b)(1)(C).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Savings Provision
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
Transition Phase
§4013a. Policy disclosures
(a) In general
Notwithstanding any other provision of law, in addition to any other disclosures that may be required, each policy under the National Flood Insurance Program shall state all conditions, exclusions, and other limitations pertaining to coverage under the subject policy, regardless of the underlying insurance product, in plain English, in boldface type, and in a font size that is twice the size of the text of the body of the policy.
(b) Violations
The Administrator may impose a civil penalty of not more than $50,000 on any person that fails to comply with subsection (a).
(
Editorial Notes
Codification
Section was enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012, and also as part of the Moving Ahead for Progress in the 21st Century Act, also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Definitions
For definitions of terms used in this section, see
§4014. Estimates of premium rates
(a) Studies and investigations
The Administrator is authorized to undertake and carry out such studies and investigations and receive or exchange such information as may be necessary to estimate, and shall from time to time estimate, on an area, subdivision, or other appropriate basis—
(1) the risk premium rates for flood insurance which—
(A) based on consideration of—
(i) the risk involved and accepted actuarial principles; and
(ii) the flood mitigation activities that an owner or lessee has undertaken on a property, including differences in the risk involved due to land use measures, floodproofing, flood forecasting, and similar measures, and
(B) including—
(i) the applicable operating costs and allowances set forth in the schedules prescribed under
(ii) any administrative expenses (or portion of such expenses) of carrying out the flood insurance program which, in his discretion, should properly be reflected in such rates,
(iii) any remaining administrative expenses incurred in carrying out the flood insurance and floodplain management programs (including the costs of mapping activities under
(iv) all costs, as prescribed by principles and standards of practice in ratemaking adopted by the American Academy of Actuaries and the Casualty Actuarial Society, including—
(I) an estimate of the expected value of future costs,
(II) all costs associated with the transfer of risk, and
(III) the costs associated with an individual risk transfer with respect to risk classes, as defined by the Administrator,
would be required in order to make such insurance available on an actuarial basis for any types and classes of properties for which insurance coverage is available under
(2) the rates, if less than the rates estimated under paragraph (1), which would be reasonable, would encourage prospective insureds to purchase flood insurance, and would be consistent with the purposes of this chapter, and which, together with a fee charged to policyholders that shall not be not subject to any agents' commission, company expenses allowances, or State or local premium taxes, shall include any administrative expenses incurred in carrying out the flood insurance and floodplain management programs (including the costs of mapping activities under
(A) any residential property which is not the primary residence of an individual;
(B) any severe repetitive loss property;
(C) any property that has incurred flood-related damage in which the cumulative amounts of payments under this chapter equaled or exceeded the fair market value of such property;
(D) any business property; or
(E) any property which on or after July 6, 2012, has experienced or sustained—
(i) substantial damage exceeding 50 percent of the fair market value of such property; or
(ii) substantial improvement exceeding 50 percent of the fair market value of such property; and
(3) the extent, if any, to which federally assisted or other flood protection measures initiated after August 1, 1968, affect such rates.
(b) Utilization of services of other Departments and agencies
In carrying out subsection (a), the Administrator shall, to the maximum extent feasible and on a reimbursement basis, utilize the services of the Department of the Army, the Department of the Interior, the Department of Agriculture, the Department of Commerce, and the Tennessee Valley Authority, and, as appropriate, other Federal departments or agencies, and for such purposes may enter into agreements or other appropriate arrangements with any persons.
(c) Priority to studies and investigations in States or areas evidencing positive interest in securing insurance under program
The Administrator shall give priority to conducting studies and investigations and making estimates under this section in those States or areas (or subdivisions thereof) which he has determined have evidenced a positive interest in securing flood insurance coverage under the flood insurance program.
(d) Parishes of Louisiana; premium rates
Notwithstanding any other provision of law, any structure existing on December 31, 1973, and located within Avoyelles, Evangeline, Rapides, or Saint Landry Parish in the State of Louisiana, which the Secretary determines is subject to additional flood hazards as a result of the construction or operation of the Atchafalaya Basin Levee System, shall be eligible for flood insurance under this chapter (if and to the extent it is eligible for such insurance under the other provisions of this chapter) at premium rates that shall not exceed those which would be applicable if such additional hazards did not exist.
(e) Eligibility of community making adequate progress on construction of flood protection system for rates not exceeding those applicable to completed flood protection system; determination of adequate progress
Notwithstanding any other provision of law, any community that has made adequate progress, acceptable to the Administrator, on the construction or reconstruction of a flood protection system which will afford flood protection for the one-hundred year frequency flood as determined by the Administrator, shall be eligible for flood insurance under this chapter (if and to the extent it is eligible for such insurance under the other provisions of this chapter) at premium rates not exceeding those which would be applicable under this section if such flood protection system had been completed. The Administrator shall find that adequate progress on the construction or reconstruction of a flood protection system, based on the present value of the completed flood protection system, has been made only if: (1) 100 percent of the cost of the system has been authorized; (2) at least 60 percent of the cost of the system has been appropriated; (3) at least 50 percent of the cost of the system has been expended; and (4) the system is at least 50 percent completed. Notwithstanding any other provision of law, in determining whether a community has made adequate progress on the construction, reconstruction, or improvement of a flood protection system, the Administrator shall consider all sources of funding, including Federal, State, and local funds.
(f) Availability of flood insurance in communities restoring disaccredited flood protection systems; criteria; rates
Notwithstanding any other provision of law, this subsection shall apply to riverine and coastal levees that are located in a community which has been determined by the Administrator of the Federal Emergency Management Agency to be in the process of restoring flood protection afforded by a flood protection system that had been previously accredited on a Flood Insurance Rate Map as providing 100-year frequency flood protection but no longer does so, and shall apply without regard to the level of Federal funding of or participation in the construction, reconstruction, or improvement of the flood protection system. Except as provided in this subsection, in such a community, flood insurance shall be made available to those properties impacted by the disaccreditation of the flood protection system at premium rates that do not exceed those which would be applicable to any property located in an area of special flood hazard, the construction of which was started prior to the effective date of the initial Flood Insurance Rate Map published by the Administrator for the community in which such property is located. A revised Flood Insurance Rate Map shall be prepared for the community to delineate as Zone AR the areas of special flood hazard that result from the disaccreditation of the flood protection system. A community will be considered to be in the process of restoration if—
(1) the flood protection system has been deemed restorable by a Federal agency in consultation with the local project sponsor;
(2) a minimum level of flood protection is still provided to the community by the disaccredited system; and
(3) restoration of the flood protection system is scheduled to occur within a designated time period and in accordance with a progress plan negotiated between the community and the Federal Emergency Management Agency.
Communities that the Administrator of the Federal Emergency Management Agency determines to meet the criteria set forth in paragraphs (1) and (2) as of January 1, 1992, shall not be subject to revised Flood Insurance Rate Maps that contravene the intent of this subsection. Such communities shall remain eligible for C zone rates for properties located in zone AR for any policy written prior to promulgation of final regulations for this section. Floodplain management criteria for such communities shall not require the elevation of improvements to existing structures and shall not exceed 3 feet above existing grade for new construction, provided the base flood elevation based on the disaccredited flood control system does not exceed five feet above existing grade, or the remaining new construction in such communities is limited to infill sites, rehabilitation of existing structures, or redevelopment of previously developed areas.
The Administrator of the Federal Emergency Management Agency shall develop and promulgate regulations to implement this subsection, including minimum floodplain management criteria, within 24 months after October 28, 1992.
(g) No extension of subsidy to new policies or lapsed policies
The Administrator shall not provide flood insurance to prospective insureds at rates less than those estimated under subsection (a)(1), as required by paragraph (2) of that subsection, for—
(1) any policy under the flood insurance program that has lapsed in coverage,,1 unless the decision of the policy holder to permit a lapse in flood insurance coverage was as a result of the property covered by the policy no longer being required to retain such coverage; or
(2) any prospective insured who refuses to accept any offer for mitigation assistance by the Administrator (including an offer to relocate), including an offer of mitigation assistance—
(A) following a major disaster, as defined in
(B) in connection with—
(i) a repetitive loss property; or
(ii) a severe repetitive loss property.
(h) Definition
In this section, the term "severe repetitive loss property" has the following meaning:
(1) Single-family properties
In the case of a property consisting of 1 to 4 residences, such term means a property that—
(A) is covered under a contract for flood insurance made available under this chapter; and
(B) has incurred flood-related damage—
(i) for which 4 or more separate claims payments have been made under flood insurance coverage under this subchapter, with the amount of each such claim exceeding $5,000, and with the cumulative amount of such claims payments exceeding $20,000; or
(ii) for which at least 2 separate claims payments have been made under such coverage, with the cumulative amount of such claims exceeding the value of the property.
(2) Multifamily properties
In the case of a property consisting of 5 or more residences, such term shall have such meaning as the Director 2 shall by regulation provide.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a)(2), (d), (e), and (h)(1)(A), was in the original a reference to "this title" meaning title XIII of
Amendments
2014—Subsec. (a)(1)(A).
Subsec. (a)(2)(E)(ii).
Subsec. (e).
Subsec. (f).
Subsec. (g).
"(1) any property not insured by the flood insurance program as of July 6, 2012;
"(2) any property purchased after July 6, 2012;".
2012—Subsec. (a).
Subsec. (a)(1)(B)(iv).
Subsec. (a)(2).
Subsecs. (b), (c), (e), (f).
Subsecs. (g), (h).
1992—Subsec. (f).
1990—Subsec. (a)(1)(B)(iii).
Subsec. (a)(2).
1983—Subsecs. (a) to (c), (e).
1974—Subsec. (e).
1973—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 2012 Amendment
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
Repeal of Certain Rate Increases
"(a)
"(1)
"(2)
"(3)
"(A)
"(B)
"(4)
"(b)
Changes in Rates Resulting From Pub. L. 113–89
Eligibility for Flood Insurance for Persons Residing in Communities That Have Made Adequate Progress on the Reconstruction or Improvement of a Flood Protection System
"(a)
"(1)
"(A) if the person resides in a community that is a participant in the National Flood Insurance Program; and
"(B) at a risk premium rate that does not exceed the risk premium rate that would be chargeable if the flood protection system had been completed.
"(2)
"(A)
"(i) 100 percent of the project cost has been authorized;
"(ii) not less than 60 percent of the project cost has been secured or appropriated;
"(iii) not less than 50 percent of the flood protection system has been assessed as being without deficiencies; and
"(iv) the reconstruction or improvement has a project schedule that does not exceed 5 years, beginning on the date on which the reconstruction or construction of the improvement commences.
"(B)
"(C)
"(3)
"(4)
"(b)
"(1)
"(A) a requirement that the Administrator shall—
"(i) consult with the owner of the flood protection system—
"(I) 6 months after the date of a determination under subsection (a);
"(II) 18 months after the date of a determination under subsection (a); and
"(III) 36 months after the date of a determination under subsection (a); and
"(ii) after each consultation under clause (i), determine whether the reconstruction or improvement is reasonably likely to be completed in accordance with the project schedule described in subsection (a)(2)(A)(iv); and
"(B) a requirement that, if the Administrator makes a determination under subparagraph (A)(ii) that reconstruction or improvement is not reasonably likely to be completed in accordance with the project schedule, the Administrator shall—
"(i) not later than 30 days after the date of the determination, notify the owner of the flood protection system of the determination and provide the rationale and evidence for the determination; and
"(ii) provide the owner of the flood protection system the opportunity to appeal the determination.
"(2)
"(A) the Administrator determines that the community has not made adequate continuing progress; or
"(B) on the date that is 5 years after the date on which the reconstruction or construction of the improvement commences, the project has not been completed.
"(3)
"(A) the community has made adequate continuing progress on the reconstruction or improvement of a flood protection system; and
"(B) there is a reasonable expectation that the reconstruction or improvement of the flood protection system will be completed not later than 1 year after the date of the determination under this paragraph.
"(4)
"(c)
"(1)
"(A) the community makes a written request for the determination setting forth the exceptional and exigent circumstances, including why the community cannot meet the criteria for adequate progress set forth in under [sic] subsection (a)(2)(A) and why immediate relief is necessary;
"(B) the Administrator submits a written report setting forth findings of the exceptional and exigent circumstances on which the Administrator based an affirmative determination to the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives not later than 15 days before making the determination; and
"(C) the eligibility for flood insurance coverage at a risk premium rate determined under this subsection terminates no later than 1 year after the date on which the Administrator makes the determination.
"(2)
"(3)
[For definitions of terms used in section 100230 of
Fees
Study of Economic Effects of Charging Actuarially Based Premium Rates for Pre-FIRM Structures
Sea Level Rise Study
2 So in original. Probably means "Administrator".
§4015. Chargeable premium rates
(a) Establishment; terms and conditions
On the basis of estimates made under
(1) chargeable premium rates for any types and classes of properties for which insurance coverage shall be available under
(2) the terms and conditions under which, and the areas (including subdivisions thereof) within which, such rates shall apply.
(b) Considerations for rates
Such rates shall, insofar as practicable, be—
(1) based on a consideration of the respective risks involved, including differences in risks due to land use measures, flood-proofing, flood forecasting, and similar measures;
(2) adequate, on the basis of accepted actuarial principles, to provide reserves for anticipated losses, or, if less than such amount, consistent with the objective of making flood insurance available where necessary at reasonable rates so as to encourage prospective insureds to purchase such insurance and with the purposes of this chapter;
(3) adequate, together with the fee under paragraph (1)(B)(iii) or (2) of
(4) stated so as to reflect the basis for such rates, including the differences (if any) between the estimated risk premium rates under
(5) adequate, on the basis of accepted actuarial principles, to cover the average historical loss year obligations incurred by the National Flood Insurance Fund.
(c) Actuarial rate properties
Subject only to the limitations provided under paragraphs (1) and (2), the chargeable rate shall not be less than the applicable estimated risk premium rate for such area (or subdivision thereof) under
(1) Post-firm properties
Any property the construction or substantial improvement of which the Administrator determines has been started after December 31, 1974, or started after the effective date of the initial rate map published by the Administrator under paragraph (2) of
(2) Certain leased coastal and river properties
Any property leased from the Federal Government (including residential and nonresidential properties) that the Administrator determines is located on the river-facing side of any dike, levee, or other riverine flood control structure, or seaward of any seawall or other coastal flood control structure.
(d) Payment of certain sums to Administrator; deposits in Fund
With respect to any chargeable premium rate prescribed under this section, a sum equal to the portion of the rate that covers any administrative expenses of carrying out the flood insurance and floodplain management programs which have been estimated under paragraphs (1)(B)(ii) and (1)(B)(iii) of
(e) Annual limitation on premium increases
Except with respect to properties described under paragraph (2) of subsection (c), and notwithstanding any other provision of this chapter—
(1) the chargeable risk premium rate for flood insurance under this chapter for any property may not be increased by more than 18 percent each year, except—
(A) as provided in paragraph (4);
(B) in the case of property identified under
(C) in the case of a property that—
(i) is located in a community that has experienced a rating downgrade under the community rating system program carried out under
(ii) is covered by a policy with respect to which the policyholder has—
(I) decreased the amount of the deductible; or
(II) increased the amount of coverage; or
(iii) was misrated;
(2) the chargeable risk premium rates for flood insurance under this chapter for any properties initially rated under
(3) the chargeable risk premium rates for flood insurance under this chapter for any properties within any single risk classification may not be increased by an amount that would result in the average of such rate increases for properties within the risk classification during any 12-month period exceeding 15 percent of the average of the risk premium rates for properties within the risk classification upon the commencement of such 12-month period; and
(4) the chargeable risk premium rates for flood insurance under this chapter for any properties described in subparagraphs (A) through (E) of
(f) Adjustment of premium
Notwithstanding any other provision of law, if the Administrator determines that the holder of a flood insurance policy issued under this chapter is paying a lower premium than is required under this section due to an error in the flood plain determination, the Administrator may only prospectively charge the higher premium rate.
(g) Frequency of premium collection
With respect to any chargeable premium rate prescribed under this section, the Administrator shall provide policyholders that are not required to escrow their premiums and fees for flood insurance as set forth under
(h) Rule of construction
For purposes of this section, the calculation of an "average historical loss year"—
(1) includes catastrophic loss years; and
(2) shall be computed in accordance with generally accepted actuarial principles.
(i) Rates for properties newly mapped into areas with special flood hazards
Notwithstanding subsection (f), the premium rate for flood insurance under this chapter that is purchased on or after March 21, 2014—
(1) on a property located in an area not previously designated as having special flood hazards and that, pursuant to any issuance, revision, updating, or other change in a flood insurance map, becomes designated as such an area; and
(2) where such flood insurance premium rate is calculated under subsection (a)(1) of
shall for the first policy year be the preferred risk premium for the property and upon renewal shall be calculated in accordance with subsection (e) of this section until the rate reaches the rate calculated under subsection (a)(1) of
(j) Premiums and reports
In setting premium risk rates, in addition to striving to achieve the objectives of this chapter the Administrator shall also strive to minimize the number of policies with annual premiums that exceed one percent of the total coverage provided by the policy. For any policies premiums that exceed this one percent threshold, the Administrator shall report such exceptions to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.
(k) Consideration of mitigation methods
In calculating the risk premium rate charged for flood insurance for a property under this section, the Administrator shall take into account the implementation of any mitigation method identified by the Administrator in the guidance issued under
(l) Clear communications
The Administrator shall clearly communicate full flood risk determinations to individual property owners regardless of whether their premium rates are full actuarial rates.
(m) Protection of small businesses, non-profits, houses of worship, and residences
(1) Report
Not later than 18 months after March 21, 2014,1 and semiannually thereafter, the Administrator shall monitor and report to Committee on Financial Services of the House Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, the Administrator's assessment of the impact, if any, of the rate increases required under subparagraphs (A) and (D) of
(A) small businesses with less than 100 employees;
(B) non-profit entities;
(C) houses of worship; and
(D) residences with a value equal to or less than 25 percent of the median home value of properties in the State in which the property is located.
(2) Recommendations
If the Administrator determines that the rate increases or surcharges described in paragraph (1) are having a detrimental effect on affordability, including resulting in lapsed policies, late payments, or other criteria related to affordability as identified by the Administrator, for any of the properties identified in subparagraphs (A) through (D) of such paragraph, the Administrator shall, not later than 3 months after making such a determination, make such recommendations as the Administrator considers appropriate to improve affordability to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (b)(2), (e), (i), and (j), was in the original a reference to "this title" meaning title XIII of
This chapter, referred to in subsec. (f), was in the original "this Act", and was translated as reading "this title", meaning title XIII of
The Flood Disaster Protection Act of 1973, referred to in subsec. (h), is
The Biggert-Waters Flood Insurance Reform Act of 2012, referred to in subsec. (h), is subtitle A (§§100201–100249) of title II of div. F of
March 21, 2014, referred to in subsec. (m)(1), was in the original "the date of the enactment of this section", and was translated as reading "the date of the enactment of this subsection", meaning the date of enactment of
Amendments
2014—Subsec. (e).
Subsec. (e)(1), (2).
Subsec. (e)(3).
Subsec. (e)(4).
Subsec. (g).
Subsec. (h).
Subsec. (i).
Subsec. (j).
Subsec. (k).
Subsec. (l).
Subsec. (m).
2012—Subsec. (a).
Subsec. (b)(5).
Subsecs. (c), (d).
Subsec. (e).
Subsec. (e)(1).
Subsec. (e)(2).
Subsec. (f).
Subsec. (g).
Subsec. (h).
Subsec. (i).
2004—Subsec. (c).
Subsec. (e).
Subsec. (f).
1994—Subsec. (c).
Subsec. (e).
1990—Subsec. (b)(3), (4).
Subsec. (d).
"(1) is a rate which is not less than the applicable estimated risk premium rate under
"(2) includes any amount for administrative expenses of carrying out the flood insurance program which have been estimated under clause (ii) of
a sum equal to such amount shall be paid to the Director, and he shall deposit such sum in the National Flood Insurance Fund established under
1983—Subsecs. (a), (c), (d).
1973—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Effective Date of 2012 Amendment
Construction of Amendment by Pub. L. 112–141
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
Implementation
Limitation on Premiums
1 See References in Text note below.
§4015a. Premium surcharge
(a) Imposition and collection
The Administrator shall impose and collect an annual surcharge, in the amount provided in subsection (b), on all policies for flood insurance coverage under the National Flood Insurance Program that are newly issued or renewed after March 21, 2014. Such surcharge shall be in addition to the surcharge under
(b) Amount
The amount of the surcharge under subsection (a) shall be—
(1) $25, except as provided in paragraph (2); and
(2) $250, in the case of a policy for any property that is—
(A) a non-residential property; or
(B) a residential property that is not the primary residence of an individual.
(c) Termination
Subsections (a) and (b) shall cease to apply on the date on which the chargeable risk premium rate for flood insurance under this chapter for each property covered by flood insurance under this chapter, other than properties for which premiums are calculated under subsection (e) or (f) of
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (c), was in the original a reference to "this title" meaning title XIII of
Section 100230 of the Biggert-Waters Flood Insurance Reform Act of 2012, referred to in subsec. (c), is section 100230 of
§4016. Financing
(a) Authority to issue notes and other obligations
All authority which was vested in the Housing and Home Finance Administrator by virtue of
(b) Deposit of borrowed funds
Any funds borrowed by the Administrator under this authority shall, from time to time, be deposited in the National Flood Insurance Fund established under
(c) Schedule of repayments
Upon the exercise of the authority established under subsection (a), the Administrator shall transmit a schedule for repayment of such amounts to—
(1) the Secretary of the Treasury;
(2) the Committee on Banking, Housing, and Urban Affairs of the Senate; and
(3) the Committee on Financial Services of the House of Representatives.
(d) Reports on repayment
In connection with any funds borrowed by the Administrator under the authority established in subsection (a), the Administrator, beginning 6 months after the date on which such funds are borrowed, and continuing every 6 months thereafter until such borrowed funds are fully repaid, shall submit a report on the progress of such repayment to—
(1) the Secretary of the Treasury;
(2) the Committee on Banking, Housing, and Urban Affairs of the Senate; and
(3) the Committee on Financial Services of the House of Representatives.
(
Editorial Notes
References in Text
Section 1303 of this Act, referred to in subsec. (a), means section 1303 of
This chapter, referred to in subsec. (a), was in the original a reference to "this title" meaning title XIII of
Amendments
2022—Subsec. (a).
2020—Subsec. (a).
2019—Subsec. (a).
2018—Subsec. (a).
2013—Subsec. (a).
2012—Subsec. (a).
Subsec. (b).
Subsecs. (c), (d).
2011—Subsec. (a).
2010—Subsec. (a).
2006—Subsec. (a).
2005—Subsec. (a).
2004—Subsec. (a).
2003—Subsec. (a)(2).
2001—Subsec. (a)(2).
2000—Subsec. (a)(2).
1999—Subsec. (a)(2).
1998—Subsec. (a)(2).
1997—Subsec. (a)(2).
1996—Subsec. (a)(2).
1984—Subsec. (a).
1983—
1973—Subsec. (a).
Statutory Notes and Related Subsidiaries
Change of Name
Reference to the Director of the Federal Emergency Management Agency in any law, rule, regulation, certificate, directive, instruction, or other official paper, considered to refer and apply to the Administrator of the Federal Emergency Management Agency, see section 612(f)(2) of
Committee on Banking, Finance and Urban Affairs of House of Representatives treated as referring to Committee on Banking and Financial Services of House of Representatives by section 1(a) of
Effective Date of 2022 Amendment
Effective Date of 2020 Amendment
"(1) This section [amending this section and
"(2) If this Act is enacted after September 30, 2020, this section shall be applied as if it were in effect on September 30, 2020."
Effective Date of 2019 Amendment
Effective Date of 2018 Amendment
Effective Date of 2010 Amendment
Effective Date of 2004 Amendment
Effective Date of 2003 Amendments
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
Functions of Housing and Home Finance Agency and head thereof transferred to Secretary of Housing and Urban Development by
Extension of Limitation on Financing Provisions
[
For nonamendatory provisions extending both the limitation on financing provisions in subsec. (a) of this section and the National Flood Insurance Program generally, see Extension of Program notes under
Executive Documents
Transfer of Functions
Functions vested in Secretary of Housing and Urban Development pursuant to this chapter transferred to Director of Federal Emergency Management Agency pursuant to Reorg. Plan No. 3 of 1978, §202, June 19, 1978, 43 F.R. 41944,
§4017. National Flood Insurance Fund
(a) Establishment; availability
To carry out the flood insurance program authorized by this chapter, the Administrator shall establish in the Treasury of the United States a National Flood Insurance Fund (hereinafter referred to as the "fund") which shall be an account separate from any other accounts or funds available to the Administrator and shall be available as described in subsection (f), without fiscal year limitation (except as otherwise provided in this section)—
(1) for making such payments as may, from time to time, be required under
(2) to pay reinsurance claims under the excess loss reinsurance coverage provided under
(3) to repay to the Secretary of the Treasury such sums as may be borrowed from him (together with interest) in accordance with the authority provided in
(4) to the extent approved in appropriations Acts, to pay any administrative expenses of the flood insurance and floodplain management programs (including the costs of mapping activities under
(5) for the purposes specified in subsection (d) under the conditions provided therein;
(6) for carrying out the program under
(7) for transfers to the National Flood Mitigation Fund, but only to the extent provided in
(8) for carrying out
(b) Credits to Fund
The fund shall be credited with—
(1) such funds borrowed in accordance with the authority provided in
(2) premiums, fees, or other charges which may be paid or collected in connection with the excess loss reinsurance coverage provided under
(3) such amounts as may be advanced to the fund from appropriations in order to maintain the fund in an operative condition adequate to meet its liabilities;
(4) interest which may be earned on investments of the fund pursuant to subsection (c);
(5) such sums as are required to be paid to the Administrator under
(6) receipts from any other operations under this chapter (including premiums under the conditions specified in subsection (d), and salvage proceeds, if any, resulting from reinsurance coverage).
(c) Investment of moneys in obligations issued or guaranteed by United States
If, after—
(1) all outstanding obligations of the fund have been liquidated, and
(2) any outstanding amounts which may have been advanced to the fund from appropriations authorized under
the Administrator determines that the moneys of the fund are in excess of current needs, he may request the investment of such amounts as he deems advisable by the Secretary of the Treasury in obligations issued or guaranteed by the United States.
(d) Availability of Fund if operation of program is carried out through facilities of Federal Government
In the event the Administrator makes a determination in accordance with the provisions of
(1) cost incurred in the adjustment and payment of any claims for losses, and
(2) payment of applicable operating costs set forth in the schedules prescribed under
for so long as the program is so carried out, and in such event any premiums paid shall be deposited by the Administrator to the credit of the fund.
(e) Annual budget
An annual business-type budget for the fund shall be prepared, transmitted to the Congress, considered, and enacted in the manner prescribed by
(f) Availability of funds dependent on future appropriations acts
The fund shall be available, with respect to any fiscal year beginning on or after October 1, 1981, only to the extent approved in appropriation Acts; except that the fund shall be available for the purpose described in subsection (d)(1) without such approval.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a) and (b)(6), was in the original a reference to "this title" meaning title XIII of
Amendments
2014—Subsec. (a)(8).
2012—Subsec. (a).
Subsec. (a)(6) to (9).
"(8) for financial assistance under
"(9) for funding, not to exceed $10,000,000 in any fiscal year, for mitigation actions under
Subsecs. (b)(5), (c), (d).
2004—Subsec. (a)(7), (8).
Subsec. (a)(9).
1994—Subsec. (a).
Subsec. (a)(6) to (8).
1990—Subsec. (a)(4).
1988—Subsec. (e).
1984—Subsec. (e).
1983—Subsecs. (a), (b)(5), (c), (d).
1981—Subsec. (a).
Subsec. (f).
Statutory Notes and Related Subsidiaries
Effective Date of 1981 Amendment
Amendment by
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
§4017a. Reserve Fund
(a) Establishment of Reserve Fund
In carrying out the flood insurance program authorized by this subchapter, the Administrator shall establish in the Treasury of the United States a National Flood Insurance Reserve Fund (in this section referred to as the "Reserve Fund") which shall—
(1) be an account separate from any other accounts or funds available to the Administrator; and
(2) be available for meeting the expected future obligations of the flood insurance program, including—
(A) the payment of claims;
(B) claims adjustment expenses; and
(C) the repayment of amounts outstanding under any note or other obligation issued by the Administrator under
(b) Reserve ratio
Subject to the phase-in requirements under subsection (d), the Reserve Fund shall maintain a balance equal to—
(1) 1 percent of the sum of the total potential loss exposure of all outstanding flood insurance policies in force in the prior fiscal year; or
(2) such higher percentage as the Administrator determines to be appropriate, taking into consideration any circumstance that may raise a significant risk of substantial future losses to the Reserve Fund.
(c) Maintenance of reserve ratio
(1) In general
The Administrator shall have the authority to establish, increase, or decrease the amount of aggregate annual insurance premiums to be collected for any fiscal year necessary—
(A) to maintain the reserve ratio required under subsection (b); and
(B) to achieve such reserve ratio, if the actual balance of such reserve is below the amount required under subsection (b).
(2) Considerations
In exercising the authority granted under paragraph (1), the Administrator shall consider—
(A) the expected operating expenses of the Reserve Fund;
(B) the insurance loss expenditures under the flood insurance program;
(C) any investment income generated under the flood insurance program; and
(D) any other factor that the Administrator determines appropriate.
(3) Limitations
(A) Rates
In exercising the authority granted under paragraph (1), the Administrator shall be subject to all other provisions of this chapter, including any provisions relating to chargeable premium rates or annual increases of such rates.
(B) Use of additional annual insurance premiums
Notwithstanding any other provision of law or any agreement entered into by the Administrator, the Administrator shall ensure that all amounts attributable to the establishment or increase of annual insurance premiums under paragraph (1) are transferred to the Administrator for deposit into the Reserve Fund, to be available for meeting the expected future obligations of the flood insurance program as described in subsection (a)(2).
(4) Deposit of premium surcharges
The Administrator shall deposit in the Reserve Fund any surcharges collected pursuant to
(d) Phase-in requirements
The phase-in requirements under this subsection are as follows:
(1) In general
Beginning in fiscal year 2013 and not ending until the fiscal year in which the ratio required under subsection (b) is achieved, in each such fiscal year the Administrator shall place in the Reserve Fund an amount equal to not less than 7.5 percent of the reserve ratio required under subsection (b).
(2) Amount satisfied
As soon as the ratio required under subsection (b) is achieved, and except as provided in paragraph (3), the Administrator shall not be required to set aside any amounts for the Reserve Fund.
(3) Exception
If at any time after the ratio required under subsection (b) is achieved, the Reserve Fund falls below the required ratio under subsection (b), the Administrator shall place in the Reserve Fund for that fiscal year an amount equal to not less than 7.5 percent of the reserve ratio required under subsection (b).
(e) Limitation on reserve ratio
In any given fiscal year, if the Administrator determines that the reserve ratio required under subsection (b) cannot be achieved, the Administrator shall submit, on a calendar quarterly basis, a report to Congress that—
(1) describes and details the specific concerns of the Administrator regarding the consequences of the reserve ratio not being achieved;
(2) demonstrates how such consequences would harm the long-term financial soundness of the flood insurance program; and
(3) indicates the maximum attainable reserve ratio for that particular fiscal year.
(f) Investment
The Secretary of the Treasury shall invest such amounts of the Reserve Fund as the Secretary determines advisable in obligations issued or guaranteed by the United States.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (c)(3)(A), was in the original "this Act", and was translated as reading "this title", meaning title XIII of
Amendments
2014—Subsec. (c)(4).
Subsec. (e).
§4018. Operating costs and allowances; definitions
(a) The Administrator shall from time to time negotiate with appropriate representatives of the insurance industry for the purpose of establishing—
(1) a current schedule of operating costs applicable both to risk-sharing insurance companies and other insurers and to insurance companies and other insurers, insurance agents and brokers, and insurance adjustment organizations participating on other than a risk-sharing basis, and
(2) a current schedule of operating allowances applicable to risk-sharing insurance companies and other insurers,
which may be payable in accordance with the provisions of subchapter II, and such schedules shall from time to time be prescribed in regulations.
(b) For purposes of subsection (a)—
(1) the term "operating costs" shall (without limiting such term) include—
(A) expense reimbursements covering the direct, actual, and necessary expenses incurred in connection with selling and servicing flood insurance coverage;
(B) reasonable compensation payable for selling and servicing flood insurance coverage, or commissions or service fees paid to producers;
(C) loss adjustment expenses; and
(D) other direct, actual, and necessary expenses which the Administrator finds are incurred in connection with selling or servicing flood insurance coverage; and
(2) the term "operating allowances" shall (without limiting such term) include amounts for profit and contingencies which the Administrator finds reasonable and necessary to carry out the purposes of this chapter.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (b)(2), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—Subsecs. (a), (b)(1)(D), (2).
1983—Subsecs. (a), (b)(1)(D), (2).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
§4019. Payment of claims
(a) In general
The Administrator is authorized to prescribe regulations establishing the general method or methods by which proved and approved claims for losses may be adjusted and paid for any damage to or loss of property which is covered by flood insurance made available under the provisions of this chapter.
(b) Minimum annual deductible
(1) Pre-firm properties
For any structure which is covered by flood insurance under this chapter, and on which construction or substantial improvement occurred on or before December 31, 1974, or before the effective date of an initial flood insurance rate map published by the Administrator under
(A) $1,500, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and
(B) $2,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000.
(2) Post-firm properties
For any structure which is covered by flood insurance under this chapter, and on which construction or substantial improvement occurred after December 31, 1974, or after the effective date of an initial flood insurance rate map published by the Administrator under
(A) $1,000, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount equal to or less than $100,000; and
(B) $1,250, if the flood insurance coverage for such structure covers loss of, or physical damage to, such structure in an amount greater than $100,000.
(c) Payment of claims to condominium owners
The Administrator may not deny payment for any damage to or loss of property which is covered by flood insurance to condominium owners who purchased such flood insurance separate and apart from the flood insurance purchased by the condominium association in which such owner is a member, based solely, or in any part, on the flood insurance coverage of the condominium association or others on the overall property owned by the condominium association.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a) and (b), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—
Subsec. (c).
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
§4020. Dissemination of flood insurance information
The Administrator shall from time to time take such action as may be necessary in order to make information and data available to the public, and to any State or local agency or official, with regard to—
(1) the flood insurance program, its coverage and objectives, and
(2) estimated and chargeable flood insurance premium rates, including the basis for and differences between such rates in accordance with the provisions of
(
Editorial Notes
Amendments
2012—
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
§4021. Participation in State disaster claims mediation programs
(a) Requirement to participate
In the case of the occurrence of a major disaster, as defined in
(b) Extent of participation
In satisfying the requirements of subsection (a), the Administrator shall require that each representative of the Administrator—
(1) be certified for purposes of the national flood insurance program to settle claims against such program resulting from such disaster in amounts up to the limits of policies under such program;
(2) attend State-sponsored mediation meetings regarding flood insurance claims resulting from such disaster at such times and places as may be arranged by the State;
(3) participate in good-faith negotiations toward the settlement of such claims with policyholders of coverage made available under the national flood insurance program; and
(4) finalize the settlement of such claims on behalf of the national flood insurance program with such policyholders.
(c) Coordination
Representatives of the Administrator shall at all times coordinate their activities with insurance officials of the State and representatives of insurers for the purposes of consolidating and expediting settlement of claims under the national flood insurance program resulting from such disaster.
(d) Qualifications of mediators
Each State mediator participating in State-sponsored mediation under this section shall be—
(1)(A) a member in good standing of the State bar in the State in which the mediation is to occur with at least 2 years of practical experience; and
(B) an active member of such bar for at least 1 year prior to the year in which such mediator's participation is sought; or
(2) a retired trial judge from any United States jurisdiction who was a member in good standing of the bar in the State in which the judge presided for at least 5 years prior to the year in which such mediator's participation is sought.
(e) Mediation proceedings and documents privileged
As a condition of participation, all statements made and documents produced pursuant to State-sponsored mediation involving representatives of the Administrator shall be deemed privileged and confidential settlement negotiations made in anticipation of litigation.
(f) Liability, rights, or obligations not affected
Participation in State-sponsored mediation, as described in this section does not—
(1) affect or expand the liability of any party in contract or in tort; or
(2) affect the rights or obligations of the parties, as established—
(A) in any regulation issued by the Administrator, including any regulation relating to a standard flood insurance policy;
(B) under this chapter; and
(C) under any other provision of Federal law.
(g) Exclusive Federal jurisdiction
Participation in State-sponsored mediation shall not alter, change, or modify the original exclusive jurisdiction of United States courts, as set forth in this chapter.
(h) Cost limitation
Nothing in this section shall be construed to require the Administrator or a representative of the Administrator to pay additional mediation fees relating to flood insurance claims associated with a State-sponsored mediation program in which such representative of the Administrator participates.
(i) Exception
In the case of the occurrence of a major disaster that results in flood damage claims under the national flood insurance program and that does not result in any loss covered by a personal lines residential property insurance policy—
(1) this section shall not apply; and
(2) the provisions of the standard flood insurance policy under the national flood insurance program and the appeals process established under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (
(j) Representatives of the Administrator
For purposes of this section, the term "representatives of the Administrator" means representatives of the national flood insurance program who participate in the appeals process established under section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 (
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a), (f)(2)(B), and (g), was in the original a reference to "this title" meaning title XIII of
Section 205 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004, referred to in subsecs. (i)(2) and (j), is section 205 of
Prior Provisions
A prior section 4021,
§4022. State and local land use controls
(a) Requirement for participation in flood insurance program
(1) In general
After December 31, 1971, no new flood insurance coverage shall be provided under this chapter in any area (or subdivision thereof) unless an appropriate public body shall have adopted adequate land use and control measures (with effective enforcement provisions) which the Administrator finds are consistent with the comprehensive criteria for land management and use under
(2) Agricultural structures
(A) Activity restrictions
Notwithstanding any other provision of law, the adequate land use and control measures required to be adopted in an area (or subdivision thereof) pursuant to paragraph (1) may provide, at the discretion of the appropriate State or local authority, for the repair and restoration to predamaged conditions of an agricultural structure that—
(i) is a repetitive loss structure; or
(ii) has incurred flood-related damage to the extent that the cost of restoring the structure to its predamaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred.
(B) Premium rates and coverage
To the extent applicable, an agricultural structure repaired or restored pursuant to subparagraph (A) shall pay chargeable premium rates established under
(C) Prohibition on disaster relief
Notwithstanding any other provision of law, any agricultural structure repaired or restored pursuant to subparagraph (A) shall not be eligible for disaster relief assistance under any program administered by the Administrator or any other Federal agency.
(D) Definitions
For purposes of this paragraph—
(i) the term "agricultural structure" means any structure used exclusively in connection with the production, harvesting, storage, raising, or drying of agricultural commodities; and
(ii) the term "agricultural commodities" means agricultural commodities and livestock.
(b) Community rating system and incentives for community floodplain management
(1) Authority and goals
The Administrator shall carry out a community rating system program, under which communities participate voluntarily—
(A) to provide incentives for measures that reduce the risk of flood or erosion damage that exceed the criteria set forth in
(B) to encourage adoption of more effective measures that protect natural and beneficial floodplain functions;
(C) to encourage floodplain and erosion management; and
(D) to promote the reduction of Federal flood insurance losses.
(2) Incentives
The program shall provide incentives in the form of credits on premium rates for flood insurance coverage in communities that the Administrator determines have adopted and enforced measures that reduce the risk of flood and erosion damage that exceed the criteria set forth in
(3) Credits
The credits on premium rates for flood insurance coverage shall be based on the estimated reduction in flood and erosion damage risks resulting from the measures adopted by the community under this program. If a community has received mitigation assistance under
(4) Reports
Not later than 2 years after September 23, 1994, and not less than every 2 years thereafter, the Administrator shall submit a report to the Congress regarding the program under this subsection. Each report shall include an analysis of the cost-effectiveness of the program, any other accomplishments or shortcomings of the program, and any recommendations of the Administrator for legislation regarding the program.
(c) Replacement of mobile homes on original sites
(1) Community participation
The placement of any mobile home on any site shall not affect the eligibility of any community to participate in the flood insurance program under this chapter and the Flood Disaster Protection Act of 1973 (notwithstanding that such placement may fail to comply with any elevation or flood damage mitigation requirements), if—
(A) such mobile home was previously located on such site;
(B) such mobile home was relocated from such site because of flooding that threatened or affected such site; and
(C) such replacement is conducted not later than the expiration of the 180-day period that begins upon the subsidence (in the area of such site) of the body of water that flooded to a level considered lower than flood levels.
(2) Definition
For purposes of this subsection, the term "mobile home" has the meaning given such term in the law of the State in which the mobile home is located.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a)(1) and (c)(1), was in the original a reference to "this title" meaning title XIII of
The Flood Disaster Protection Act of 1973, referred to in subsec. (c)(1), is
Amendments
2012—Subsecs. (a)(1), (2)(B), (C), (b).
2004—Subsec. (c).
1994—Subsec. (a)(1).
Subsec. (a)(2).
Subsec. (b).
1983—
1969—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
§4023. Properties in violation of State and local law
No new flood insurance coverage shall be provided under this chapter for any property which the Administrator finds has been declared by a duly constituted State or local zoning authority, or other authorized public body, to be in violation of State or local laws, regulations, or ordinances which are intended to discourage or otherwise restrict land development or occupancy in flood-prone areas.
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original a reference to "this title" meaning title XIII of
Amendments
2012—
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
§4024. Coordination with other programs
In carrying out this chapter, the Administrator shall consult with other departments and agencies of the Federal Government, and with interstate, State, and local agencies having responsibilities for flood control, flood forecasting, or flood damage prevention, in order to assure that the programs of such agencies and the flood insurance program authorized under this chapter are mutually consistent.
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original a reference to "this title" meaning title XIII of
Amendments
2012—
1983—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
§4025. Flood insurance advisory committee
(a) Appointment; duties
The Administrator shall appoint a flood insurance advisory committee without regard to the provisions of title 5 governing appointments in the competitive service, and such committee shall advise the Administrator in the preparation of any regulations prescribed in accordance with this chapter and with respect to policy matters arising in the administration of this chapter, and shall perform such other responsibilities as the Administrator may, from time to time, assign to such committee.
(b) Membership
Such committee shall consist of not more than fifteen persons and such persons shall be selected from among representatives of—
(1) the insurance industry,
(2) State and local governments,
(3) lending institutions,
(4) the homebuilding industry, and
(5) the general public.
(c) Compensation and travel expenses
Members of the committee shall, while attending conferences or meetings thereof, be entitled to receive compensation at a rate fixed by the Administrator but not exceeding $100 per day, including traveltime, and while so serving away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as is authorized under
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original a reference to "this title" meaning title XIII of
Amendments
2012—Subsecs. (a), (c).
1983—Subsecs. (a), (c).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
Termination of Advisory Committees
Advisory committees in existence on Jan. 5, 1973, to terminate not later than the expiration of the 2-year period following Jan. 5, 1973, unless, in the case of a committee established by the President or an officer of the Federal Government, such committee is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a committee established by the Congress, its duration is otherwise provided by law. Advisory committees established after Jan. 5, 1973, to terminate not later than the expiration of the 2-year period beginning on the date of their establishment, unless, in the case of a committee established by the President or an officer of the Federal Government, such committee is renewed by appropriate action prior to the expiration of such 2-year period, or in the case of a committee established by the Congress, its duration is otherwise provided by law. See
§4026. Expiration of program
No new contract for flood insurance under this chapter shall be entered into after September 30, 2023.
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original a reference to "this title" meaning title XIII of
Amendments
2022—
2020—
2019—
2018—
2012—
2011—
2010—
2004—
2003—
2001—
1998—
1997—
1996—
1994—
1990—
1989—
1988—
1987—
1986—
1985—
1983—
1982—
1981—
1979—
1978—
1977—
1973—
Statutory Notes and Related Subsidiaries
Effective Date of 2022 Amendment
Amendment by
Effective Date of 2020 Amendment
Amendment by
Effective Date of 2018 Amendment
Amendment by
Effective Date of 2010 Amendment
Amendment by
Effective Date of 2004 Amendment
Amendment by
Effective Date of 2003 Amendments
Amendment by
Amendment by
Effective Date of 1998 Amendment
Effective Date of 1981 Amendment
Amendment by
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Extension of Program
[Section 101(b) of div. G of
§4027. Biennial report to President
(a) In general
The Administrator shall biennially submit a report of operations under this chapter to the President for submission to the Congress.
(b) Effects of flood insurance program
The Administrator shall include, as part of the biennial report submitted under subsection (a), a chapter reporting on the effects on the flood insurance program observed through implementation of requirements under the Riegle Community Development and Regulatory Improvement Act of 1994.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original a reference to "this title" meaning title XIII of
The Riegle Community Development and Regulatory Improvement Act of 1994, referred to in subsec. (b), is
Amendments
2012—
1994—
1983—
1980—
Statutory Notes and Related Subsidiaries
Effective Date
Section effective 120 days following Aug. 1, 1968, or such later date prescribed by the Secretary but in no event more than 180 days following Aug. 1, 1968, see section 1377 of
Transfer of Functions
For transfer of all functions, personnel, assets, components, authorities, grant programs, and liabilities of the Federal Emergency Management Agency, including the functions of the Under Secretary for Federal Emergency Management relating thereto, to the Federal Emergency Management Agency, see
For transfer of functions, personnel, assets, and liabilities of the Federal Emergency Management Agency, including the functions of the Director of the Federal Emergency Management Agency relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see former section 313(1) and
§4027a. Report of the Administrator on activities under the National Flood Insurance Program
(1) In general
The Administrator shall, on an annual basis, submit a full report on the operations, activities, budget, receipts, and expenditures of the National Flood Insurance Program for the preceding 12-month period to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives.
(2) Timing
Each report required under paragraph (1) shall be submitted to the committees described in paragraph (1) not later than 3 months following the end of each fiscal year.
(3) Contents
Each report required under paragraph (1) shall include—
(A) the current financial condition and income statement of the National Flood Insurance Fund established under
(i) premiums paid into such Fund;
(ii) policy claims against such Fund; and
(iii) expenses in administering such Fund;
(B) the number and face value of all policies issued under the National Flood Insurance Program that are in force;
(C) a description and summary of the losses attributable to repetitive loss structures;
(D) a description and summary of all losses incurred by the National Flood Insurance Program due to—
(i) hurricane related damage; and
(ii) nonhurricane related damage;
(E) the amounts made available by the Administrator for mitigation assistance under
(F) the estimate of the Administrator as to the average historical loss year, and the basis for that estimate;
(G) the estimate of the Administrator as to the maximum amount of claims that the National Flood Insurance Program would have to expend in the event of a catastrophic year;
(H) the average—
(i) amount of insurance carried per flood insurance policy;
(ii) premium per flood insurance policy; and
(iii) loss per flood insurance policy; and
(I) the number of claims involving damages in excess of the maximum amount of flood insurance available under the National Flood Insurance Program and the sum of the amount of all damages in excess of such amount.
(
Editorial Notes
References in Text
This Act, referred to in par. (3)(E), is
Codification
Section was enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012, and also as part of the Moving Ahead for Progress in the 21st Century Act, also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Definitions
For definitions of terms used in this section, see
§4027b. Assessment of claims-paying ability
(1) Assessment
(A) Assessment required
(i) In general
Not later than September 30 of each year, the Administrator shall conduct an assessment of the ability of the National Flood Insurance Program to pay claims.
(ii) Private market reinsurance
The assessment under this paragraph for any year in which the Administrator exercises the authority under
(iii) First assessment
The Administrator shall conduct the first assessment required under this paragraph not later than September 30, 2012.
(B) Considerations
In conducting an assessment under subparagraph (A), the Administrator shall take into consideration regional concentrations of coverage written by the National Flood Insurance Program, peak flood zones, and relevant mitigation measures.
(2) Annual report of the Administrator of activities under the National Flood Insurance Program
The Administrator shall—
(A) include the results of each assessment in the report required under
(B) not later than 30 days after the date on which the Administrator completes an assessment required under paragraph (1), make the results of the assessment available to the public.
(
Editorial Notes
References in Text
This section, referred to in par. (1)(A)(ii), means section 100232 of
Codification
Section was enacted as part of the Biggert-Waters Flood Insurance Reform Act of 2012, and also as part of the Moving Ahead for Progress in the 21st Century Act, also known as the MAP–21, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Definitions
For definitions of terms used in this section, see
1 See References in Text note below.
§4028. John H. Chafee Coastal Barrier Resources System
(a) No new flood insurance coverage may be provided under this chapter on or after October 1, 1983, for any new construction or substantial improvements of structures located on any coastal barrier within the John H. Chafee Coastal Barrier Resources System established by
(b) No new flood insurance coverage may be provided under this chapter after the expiration of the 1-year period beginning on November 16, 1990, for any new construction or substantial improvements of structures located in any area identified and depicted on the maps referred to in
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original a reference to "this title" meaning title XIII of
Amendments
1999—
1990—
1982—Subsecs. (a) to (c).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 1981, see section 371 of
Study for Designation of Undeveloped Coastal Barriers; Report and Recommendations to Congress
§4029. Colorado River Floodway
(a) Renewal and transfer of policies; acquisition of policies after filing of maps
Owners of existing National Flood Insurance Act policies with respect to structures located within the Floodway established under
(b) New coverage for new construction or substantial improvements
No new flood insurance coverage may be provided under this chapter on or after a date six months after October 8, 1986, for any new construction or substantial improvements of structures located within the Colorado River Floodway established by
(c) Establishment of temporary boundaries
The Secretary of the Interior may by rule after notice and comment pursuant to
(d) Loans by federally supervised, approved, regulated, or insured financial institutions
A regulated lending institution or Federal agency lender may make loans secured by structures which are not eligible for flood insurance by reason of this section: Provided, That prior to making such a loan, such institution determines that the loans or structures securing the loan are within the Floodway.
(
Editorial Notes
References in Text
The National Flood Insurance Act, referred to in subsec. (a), probably means the National Flood Insurance Act of 1968, title XIII of
This chapter, referred to in subsec. (b), was in the original a reference to "this title" meaning title XIII of
Amendments
1994—Subsec. (d).
1988—
1 See References in Text note below.
§4030. Repealed. Pub. L. 112–141, div. F, title II, §100225(b), July 6, 2012, 126 Stat. 941
Section,
§4031. Treatment of certain payments
Assistance provided under a program under this chapter for flood mitigation activities (including any assistance provided under the mitigation pilot program under section 4102a 1 of this title, any assistance provided under the mitigation assistance program under
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original a reference to "this title" meaning title XIII of
1 See References in Text note below.
§4032. Treatment of swimming pool enclosures outside of hurricane season
(a) In general
Notwithstanding any other provision of law, including the adequate land use and control measures developed pursuant to
(1) Nonsupporting breakaway walls in the space below the lowest elevated floor of a building, if the space is used solely for a swimming pool between November 30 and June 1 of any year, in an area designated as Zone V on a flood insurance rate map.
(2) Openings in walls in the space below the lowest elevated floor of a building, if the space is used solely for a swimming pool between November 30 and June 1 of any year, in an area designated as Zone A on a flood insurance rate map.
(b) Rule of construction
Nothing in subsection (a) shall be construed to alter the terms and conditions of eligibility and insurability of coverage for a building under the standard flood insurance policy under the national flood insurance program.
(
§4033. Designation of Flood Insurance Advocate
(a) In general
The Administrator shall designate a Flood Insurance Advocate to advocate for the fair treatment of policy holders under the National Flood Insurance Program and property owners in the mapping of flood hazards, the identification of risks from flood, and the implementation of measures to minimize the risk of flood.
(b) Duties and responsibilities
The duties and responsibilities of the Flood Insurance Advocate designated under subsection (a) shall be to—
(1) educate property owners and policyholders under the National Flood Insurance Program on—
(A) individual flood risks;
(B) flood mitigation;
(C) measures to reduce flood insurance rates through effective mitigation;
(D) the flood insurance rate map review and amendment process; and
(E) any changes in the flood insurance program as a result of any newly enacted laws (including this Act);
(2) assist policy holders under the National Flood Insurance Program and property owners to understand the procedural requirements related to appealing preliminary flood insurance rate maps and implementing measures to mitigate evolving flood risks;
(3) assist in the development of regional capacity to respond to individual constituent concerns about flood insurance rate map amendments and revisions;
(4) coordinate outreach and education with local officials and community leaders in areas impacted by proposed flood insurance rate map amendments and revisions; and
(5) aid potential policy holders under the National Flood Insurance Program in obtaining and verifying accurate and reliable flood insurance rate information when purchasing or renewing a flood insurance policy.
(
Editorial Notes
References in Text
This Act, referred to in subsec. (b)(1)(E), is
Codification
Section was enacted as part of the Homeowner Flood Insurance Affordability Act of 2014, and not as part of the National Flood Insurance Act of 1968 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Definitions
For definitions of terms used in this section, see